Thursday, October 25, 2012

Monetary Base Still Not Growing

Even though QE3 has now been in effect for over a month, the monetary base hasn't budged since it was announced.  As I've documented before, the monetary base has been highly correlated with commodity prices since QE began in 2008, so the fact that the base has not broken out higher could help to explain why crude and gold are also failing to make new highs.

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